Workspace giant IWG launches £100m share buyback scheme
Office space provider IWG has launched a £100m share buyback and increased its dividend.
The company, which operates under the Regus brand, increased its interim dividend 10.3 per cent to 2.15p per share as it announced it would repurchase £100m worth of shares by 5 August next year.
Read more: Workspace giant IWG posts double digit growth
In its first half results this morning the company reported total pre tax profit of £53.4m. Revenue increased 10 per cent to £1.3bn from £1.16bn in the first six months of last year.
“We look forward to the remainder of the year with confidence. Even in this period of global, political and economic uncertainty, we expect the positive momentum to continue in our business and this is reflected in the increased proposed dividend and £100m share repurchase programme,” said IWG chief executive Mark Dixon.
IWG sold off its Japanese business for £320m in April as it launched a new franchise model to accelerate growth.
Today the company said it had signed franchise agreements with multiple partners and had seen strong interest from third parties seeking to operate IWG brands.
Read more: IWG share price soars after Japanese franchise deal
Dixon added: “We are already working very closely with our partner in Japan to continue to develop attractive growth opportunities and they have committed to a development plan that will add significantly to the network.
“Interest in partnering with IWG, the market leader, is high and we are in discussions with a number of prospective partners. We anticipate providing an update in the second half of the year.”